Hi i live in HK and am a HK citizen. i have never lived in Japan anytime in the past and no plan to move there in foreseeable future. I have some cash deposit in Japanese Yen in my HK bank account which i consider investing in some Japan listed ETFs. The yen-denominated ETFs I am interested in are the ones like 2563 JP or 2845 JP ( Yen-denominated SP 500 and Nasdaq 100 index ETF).
Before i invest, i have a question about the capital gain tax on investing in JP stocks/ETFs as a non tax resident. I was wondering as an overseas-resided non tax resident, am i liable to paying the 20% capital gain tax on the Japan -listed ETFs ? if yes, then how shall i file tax return? i am investing via IBHK and have been told by IBHK that it wont withhold any capital gain tax for trading Japan stocks like it does with investing in the US stocks( IBHK withholds tax on dividends from US stocks while no capital gain tax on US stocks as a non US tax resident). I learned that it would be very complicated to file tax return in Japan on one’s own due to language barrier. i donot speak Japanese and am not interested in ETFs tracking japan stock market. Otherwise i would switch to buy Yen-denominated ETFs listed elsewhere (e.g. US/London) instead of in the japan mkt. I cant convert the Yen into USD or HKD for now obviously due to the unfavourable exchange rate. I have not found an answer to the above question anywhere on internet. Just wonder if anyone in similar situation may share your experience? thanks in advance!
by Any_Dream6255